DeBarry Corporation makes an investment of $50,000 that yields the following cash flows:

Year Cash Flow

1 $10,000

2 10,000

3 16,000

4 18,000

5 20,000

a. What is the present value with a 9 percent discount rate (cost of capital)? (Use a Financial calculator to arrive at the answers. Round the final answer to the nearest whole dollar.)

Net present value $

b. What is the IRR? (Round the final answer to 2 decimal places.)

IRR %

c. Would you make the same decision under both parts a and b? Yes No